The DC Department of Insurance, Securities and Banking (DISB) is warning residents to stay vigilant against affinity fraud, a deceptive scheme where fraudsters exploit trust within close-knit groups to push fake investments.
What is Affinity Fraud?
Scammers pretend to be part of a trusted community—whether based on race, age, religion or other affiliations—to gain credibility and lure victims into fake investments. These schemes often turn out to be Ponzi or pyramid scams, where new investors' money only fuels payouts to earlier investors, rather than generating real profit.
By the time the scheme collapses, victims are left with empty pockets and false promises.
Red Flags to Watch For:
- Exclusive "group-only" investment offers
- Pressure to invest quickly—especially if secrecy is encouraged
- Promises of high returns with little to no risk
- Fraudsters who aren’t licensed to sell investments
- Lack of proper documentation or transparency
If it sounds too good to be true, it probably is!
Washington, DC Fraud Stats
According to the FBI (IC3), in 2024, fraud losses in DC totaled nearly $300 million.
Report Suspected Fraud!
If you suspect or have fallen victim to affinity fraud, report it immediately:
- DISB Enforcement & Consumer Protection Division - (202) 727-8000
- FBI Internet Crime Complaint Center - or call FBI Washington Field Office at (202) 278-2000
- Federal Trade Commission (FTC) - ReportFraud.ftc.gov
Stay informed. Protect yourself. Stop fraud before it spreads.